After successfully raising Rs 520 crore in June, 2011, ASK Property Investment Advisors (ASK PIA), now plans to raise Rs 480 crore from high networth individuals (HNI) to invest in residential properties.
ASK PIA, a venture of the ASK Group, was set up to manage and advise real estate dedicated funds.
“We now plan to raise Rs 480 crore in next six-months period from HNI’s to invest in residential properties in Tier-I cities Mumbai, Delhi and Bangalore,” ASK PIA executive director Sunil Rohokale told reporters here.
The company is looking at project level investment and is having an active discussion with property developers in New Delhi, Mumbai and Bangalore, Rohokale said.
The company had successfully raised Rs 520 crore in June 2011 for a domestic realty fund. Around 250 investors have participated in the second fund that was launched in January this year, with average size of Rs 2 crore per investor.
The fund will focus on mid-segment residential development and execution, ASK PIA, CEO and MD Amit Bhagat said.
The fund has tied up with leading developers namely ATS Infrastructure in Noida, Darode Jog in Pune, Amit Enterprises in Pune, Mantri Developers of Sushil Mantri Group in Chennai and Bangalore and Real Value Promoters in Chennai.
The domestic real estate funds will have greater investment opportunities in the coming quarter given the fact that realty developers are facing pressure to repay debt and redemption of quasi equity instruments.
“In the current scenario, counter cyclical opportunity provided due to liquidity crunch and high interest rate presents a risk diversification and expansion opportunity for developers,” Rohokale said.
ASK had earlier raised Rs 340 crore in 2009 after the global financial crisis, which was committed in six mid-size real estate projects.
ASK group manages assets of more than $1 billion for its clients in Equity PMS (portfolio management services), Wealth Advisory and Real Estate PMS.